Top 10 Accounting Tools to Monitor Business Success
As the business grow, proper accounting, reviewing and approving of all transactions, seamlessly, becomes complex and time consuming. The management always look for tools that can help to account as well as monitor and control the accounting information as they happen so as to take right decision for the business to move along.
Today, all accounting is now done through Accounting software as it is an easy-to-use tool that can help to organize daily transactions. All Accounting software do Record expenses, income, liabilities, and assets, Calculate account totals, Store digital copies of receipts and documents, Reconcile bank accounts and Create financial statements and reports. In addition, there are several Accounting software on the shelf which can address specific accounting issues and can further be integrated with payroll, inventory, Fixed Assets as well work on cloud infrastructure. The management must evaluate different accounting software to meet its requirements and ensure better accounting information flow.
Best Accounting Tools for Businesses Success
There are a number of accounting tools for business, which has been developed over the time, to suit the management for business success. The trick is to find the best accounting tools for small business and some of them are listed below for management to test for good accounting:
- Invoicing Software: Generally, invoicing software is built into accounting software. If not, consider finding a software program for invoicing. This will help to create an efficient and effective system for collecting customer payments, sending reminders, check ageing and meet all statutory compliances.
- Business Credit Card: Business Credit cards can finance purchases by different business heads according to their needs, keeping a proper tab on the details and accounting. They also offer higher spending limits according to business and help to account and approve through a systematic process. The management can save much time in managing expenses through this tool.
- Financial Calendar: When running a business, there are several accounting deadlines and regularly attend meetings with various stakeholders to achieve desired business results. Don’t let critical financial tasks and due dates slip your mind. The use of a financial calendar tool to mark essential deadlines and due dates both for accounting close as well as statutory deadlines is a must.
- Expense Tracking Software: As the business volume surges with growth, streamlining and improving the process of collecting and organizing receipts, invoices & other supporting documents becomes a constant challenge. The need for management to handle a large volume of expenses to create accurate and easy-to-read reports, verify and approve reports, and then add results to make settlements in expenditures does become time-consuming. This software can help to monitor all such expenses at ease.
- Budgets, Forecast, and Cash Flow Statement: Budgets and Cash Flow Statements are financial tools that businesses use to establish plans for their future. A budget shows the financial direction of where management wants to take a company within the span of a year. In contrast, a forecast uses past historical data to predict a company’s future financial outcomes. Both tools help the management to keep costs under control. Creating a cash flow statement can also help manage a business’s finances. It enables to estimate how much money the company will make and spend at any given point, and will allow taking the appropriate steps to ensure that cash outflow is not more than your inflow
- Standard Template: In order to bring the standard processes in accounting to ensure error-free calculation and recording, businesses prefer to develop Templates that can be used by all like Reconciliation Templates, Journal Templates, AR/AP Ageing Reports Template, AR/AP balance Confirmation Template, Cash Flow Template, Expense Report Template, Travel Statement Template, Income and Balance Sheet Template.
- Accounting Ratios: Accounting ratios are an important tool for analyzing financial statements. It is a comparison of two or more financial data that is used to analyze a company’s financial statements. These depict a connection between two or more accounting numbers obtained from financial statements. It is a useful tool for shareholders, creditors, and other stakeholders to understand a company’s profitability, strength, and financial health. The commonly used ratios are Profitability, Leverage, and Liquidity ratios for example – Quick ratio, Debt to equity ratio, working capital ratio, Price to earnings ratio, Earnings per share, Return on equity ratio, and Profit margin.
- MIS & AIS: Like MIS, the Accounting Information System (AIS) tool is a computer-based system that an organization uses to make critical financial decisions. An AIS will collect, process, analyze and store the financial data of a company. And when called upon, it will retrieve and report such data to its users, namely accountants, consultants, financial officers CFO, auditors, government tax authorities, etc.
- Physical Stock Taking: Most big businesses often adopt physical verification as a tool to keep control of their assets. This involves regular cash count, periodic inventory count, and asset count to understand the location and condition of the assets.
- Audit: Auditors may be hired to examine financial statements, management accounts and reports, accounting records, operational reports, revenue reports, and expense reports to ensure that the records are presented fairly and accurately and comply with certain standards. Generally, this is done through Internal Audit, Sox testing, and Compliance audit.
About SBS
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